How to Turn PLanogram Compliance in Retail Store Into Success

What is Planogram Compliance?

The concept of planogram compliance refers to the in-store planogram implementation. The purpose of this process is to perform a high-quality layout on the shelves of the store that fully complies with the planogram. Diligent in-store execution of the display by the manager ensures effective placement and further sales. When the layout of products meets all the requirements of the planogram, customers will be able to easily find the products they need.

What does a retailer get with a high-quality execution of planograms in the store? What are the benefits of planogram compliance?

The planogram provides the best positions for products on the shelves. Efficient product placement allows you to maximize sales, optimize the use of store space, increase the visual appeal of products, and create opportunities for cross-selling and upselling.

The planogramming process does not end after creating planograms and sending them to the store. Any virtual layout created in a special service must be implemented in real life. And most importantly, the created planogram sent to the store must be executed within a certain time frame.

What Influences Planogram Compliance in Stores?

There are several causes that affect the efficiency of layout execution due to the planogram.

Missing Data:

• Inaccurate or incomplete data on the size of equipment, products, and non-compliance between the real plan of the store and the floor plan.

• Invalid sales data.

Data plays an important role in creating planograms. One of the significant obstacles for specialists in the planogramming process can be inaccurate or incomplete data on the size of the store, equipment, and product parameters. Planograms built with the wrong data will become a problem when implemented in a store. Thus, empty spaces may appear on the shelves or products will not fit in the spaces allocated for them. Having received the wrong planogram for execution, the manager in the store can place the product at his discretion. This will complicate the whole process of planogramming. Layout control makes no sense because such planograms will not work in the store and the merchandising strategy will be impossible. So effective merchandising starts with accurate data as the foundation for planogram development.

In order to develop an effective planogram, you need not only size data, but also information about visitors, customer preferences, sales data, retail trends, etc. With this critical data in hand, retailers are able to create effective planograms that are understandable to store managers.

Out-of-Stock

Planogram execution in the store is impossible without inventory. Conversely, automated planogram control in the store allows you to track the availability of goods and reduce out-of-stock (OOS). Planogramming helps prevent out-of-stock before it becomes a problem on the shelves. In order to do this, retailers use tools that can track inventory availability. The planogramming process allows merchandisers to do more than just control in-store layout. but to identify the shortage of goods, effectively manage inventory, optimize shelf space, and coordinate restocking.

Poor Planogram Compliance Control

It is very difficult to control the display in the store when there is poor communication between different departments of the retail chain and each process goes separately. The automated planogramming process combines all processes in one system, which allows you to create planograms, send them to stores, and track the layout in accordance with planograms. Feedback from stores is very important here for the timely correction of errors or changes in the assortment and for sending updated planograms. This is critical to ensuring the correct implementation of planograms.

The good news is that retailers have every opportunity to rectify the situation and ensure the effective implementation of planograms. PlanoHero, the single platform for planogramming automation helps to control planogram compliance that meets all shelf space requirements. By sending the planograms for execution, specialists from the HQ can track all discrepancies and control the quality of the layout execution.

How is the Planogram Compliance Control Happening in PlanoHero?

After integrating with PlanoHero platform, the retailer gets the opportunity to combine all retail processes in one system, where all participants can work smoothly and receive the necessary data quickly and on time.

The functionality of PlanoHero allows you to:

1. Create a plan of the store and store fixtures, and optimize the space of stores and shelves.
2. Create a planogram with detailed settings for the layout of goods on the shelves. Create automatic layout rules and apply them to other store planograms.
3. Use the task manager, as well as mobile applications for stores 
4. The control block allows you to establish communication between departments (between the HQ and stores).

The PlanoHero service provides quick and easy access to planograms using your phone.  PlanoHero Layout mobile app was developed especially for store managers and helps them place products on the shelves according to the planogram. A store employee receives a planogram in a mobile application and can view all the planogram details using a smartphone. Here you can see the visualization of the layout on the shelves using augmented reality AR. After the planogram is executed, the manager sends photo reports of the completed layout to the office via PlanoHero Layout app, 

Specialists from the central office receive a photo report from the store in the service, check and confirm the planogram compliance, or in case of errors, return the planogram again to the store for execution. PlanHero platform allows you to optimize the entire planogram execution and control process using the service web version and mobile application.

Final Words

Timely implementation of planograms in stores improves customer experience. The constant on-shelf availability of goods and convenient, beautiful layout attract buyers. Specialists who create planograms use sales analytics and predict customer behavior. Well-designed planograms take into account the convenient placement of top-selling goods in the right places on the trading floor with high traffic. Proper in-store implementation of the planogram promises a positive customer experience and increased revenue. After all, happy customers benefit both retailers and brands.

A study by the National Association of Retail Marketing Services (NARMS) found that retailers who achieve planogram compliance can realize a 7.8% increase in annual sales and an 8.1% increase in profits.

Specialists can create the perfect planogram based on important data and agreements with brands and suppliers. But, if the planogramming department does not monitor and control planogram compliance in the store, merchandising will be ineffective, leading to poor quality results.

Proper execution of planograms ensures that the right items are displayed in the right quantities and in the right places on the shelves. This improves in-store customer experience and creates easy and convenient access to products, which increases sales and revenue. In addition, a layout that complies with the planogram allows brands to easily analyze and evaluate the performance of their SKUs, creating the ability to adjust planograms based on products.

Use a ready-made solution - the PlanoHero platform to control the implementation of planograms and maximize sales through an established planogramming process.